Daily Discussion, December 31, 2021

Thanks for your reply. Since you're already doing this I hope you don't mind me asking a few questions:

Let's say I:

  • Put down 0.2 BTC as collateral
  • That was worth $10,000 at the time
  • I repay my loan in full
  • BTC has doubled in price during the time of my loan

Do I get my 0.2 BTC (now worth $20,000) back as collateral or 0.1 BTC (worth $10,000)?

Let's say with my 0.2 BTC collateral I borrow 50% of its value (i.e. $5000) and buy more BTC (i.e 0.1 BTC) can I then send that 0.1 BTC as further collateral to reduce my LTV ratio from 50% to 33%?

If they need to liquidate do they liquidate all of the collateral or just a proportionate amount of it?

/r/Bitcoin Thread Parent